Neumann Update

In this past weekend's Sunday paper - the following update was available on Neumann Homes:

Neumann Homes has received bankruptcy court approval to complete homes that are under construction. The court has approved that Neumann Homes can work with the lenders - such that they will transfer title of the home to the lenders (banks). The lenders will then work with Neumann and the customer to ensure that the home is completed and fulfill the contracts. The article went on to say that all lenders, with the exception of Bank of America, have agreed to the program. So the remaining homes in VHP should see some activity in the near future.

I haven't gotten any confirmation from anyone at Neumann when exactly things will ramp back up - but this should get the ball rolling.

They haven't posted any updates on what will happen to people still under warranty and/or how things like the fences that need to be painted on "sold" homes will be taken care of. Also there is no mention of anything to do with the concrete issues several people have had. I think these 3 items will likely end up falling back on the homeowners. I think the bankruptcy court will just allow Neumann to complete the homes under construction at this point.

Mark Henault